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Foreclosures

If you have a house or other property that is being foreclosed on or that will be foreclosed on, bankruptcy may provide you with relief. Bankruptcy has several possible different options for you. First and foremost, filing a bankruptcy petition automatically stops the foreclosure proceedings. This gives you time to determine which options are available and which option will be best for you. Your options will differ depending on whether you file bankruptcy under Chapter 7 or Chapter 13. Normally, you will have more options regarding foreclosure if you file a Chapter 13 bankruptcy.

A Chapter 13 bankruptcy will immediately, but temporarily, stop the foreclosure to give you some time to determine how you would like to proceed. Your first option is that you may want to let your house go back to the lender. In this event, you simply allow the lender to take back your house. Any balance still owed by you after the lender sells the house will simply be a part of your bankruptcy plan. The Chapter 13 bankruptcy plan gives you three to five years to pay off debt, spread out over the course of the plan. Any unpaid balances that remain at the end of the plan are discharged (extinguished) no matter how much is still owed. Additionally, we will negotiate with the lender to change the original terms of your loan in a way that will be most beneficial to you. For example, we may be able to either, reduce the total amount of what you owe, reduce the interest rate being paid, change the term of the loan, or a combination of all three actions. At the same time, we may be able to reduce the payment amount of your other current debts, which will give you additional funds to help you pay your home loan. Usually, those filing Chapter 13 prefer to keep their home, but this is a good option for those who are ready to release their house. Most debtors do not choose this option under a Chapter 13 plan.

Like Chapter 13, a Chapter 7 bankruptcy also will immediately, but temporarily, stop the foreclosure of your home. Again, this provides a debtor with the time to determine his or her options. Under Chapter 7, you can simply allow your home to return to the lender. If the bankruptcy is completed, your debt to your home lender is discharged (extinguished) and you owe nothing to your lender. If you do not file for bankruptcy and the lender completes a foreclosure on your home, you will be liable for the difference between what the lender ends up selling the house for, and the amount you owe on the loan. Another option is to reaffirm the debt on your home. Under this option, you would enter into a new agreement with your lender to make payments against the loan on your home. You would also have to get current on any back debt owed on the loan. Again, it may be possible for us to negotiate a more favorable reaffirmation agreement. At the same time, most of your other unsecured debt (such as credit cards, medical bills, etc.) would be discharged (extinguished). This could provide you with additional funds to continue to make payments to your home lender.

If you are faced with a foreclosure, please us immediately. Call the Law Office of Todd E. Tkach, P.C. to talk with one of our attorneys about your options. We offer a free initial and confidential consultation to evaluate your current foreclosure situation, as well as your entire financial condition. We'll discuss with you how the bankruptcy laws can best benefit you and your unique financial situation. Our analysis of your financial condition will give you the information necessary for you to make a decision on how to proceed with your financial recovery. From there, you can get started with eliminating debt, restoring your credit and pursuing your goal of financial stability. Don't wait. Time is of the essence if you are facing foreclosure. The sooner you call us, the sooner we can help you to get on the road to financial recovery and financial health. We are committed to helping you through this challenging time. You have our commitment that you will receive personal attention and a plan best designed for you. We pride ourselves on providing prompt communication and personal, confidential consultations. We will immediately address your concerns and will return your phone calls as soon as possible. Call us now at 214-999-0595 or toll free at 866-257-210